Determinants of Profitability, Risk, and Efficiency for Korean and Chinese Banks

• 영문명: Determinants of Profitability, Risk, and Efficiency for Korean and Chinese Banks
• 발행기관: 한국무역연구원
• 저자명: 변해영(Hae-Young Byun)
• 간행물 정보: 『무역연구』제13권 제2호, 65~85쪽, 전체 21쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2017.04.30

영문 초록

This paper investigates the determinants of profitability, risk, and efficiency for Korean and Chinese commercial banks. To conduct the empirical analysis, this study selects five nation-wide banks and six local banks in Korea, and five state-owned banks and eight joint-equity banks in China. The main regression results are as follows: First, this study finds that the important internal determinants for Korean and Chinese commercial banks are operational efficiency, management efficiency measured by overhead expenses, and operating income. GDP is the most significant external determinant. Second, the profitability of Korean banks is increased because of capital strength and operating income. For Chinese banks, operational efficiency and operating income are important determinants of profitability. Third, the risk of Korean banks is increased by bank diversification; but, for Chinese banks, the loan-deposit ratio increases banks’ risk. Fourth, for Korean banks, bank size has a positive influence on efficiency, while for Chinese banks liquidity and capital strength have a positive impact on efficiency. In conclusion, both Korean and Chinese banks have common and different determinants of profitability, risk and efficiency depending on their specific situation. This study is preliminary tests for Korean banks on how to team up with Chinese banks to expand markets and earn profits. Furthermore, forward-looking efforts should be made to strengthen Korean banks’ influence in global market based on this results.

목차

Ⅰ. Introduction

Ⅱ. Background and Hypothesis Development

Ⅲ. Research Methodology

Ⅳ. Empirical Results

Ⅴ. Conclusion

키워드

Bank Efficiency Profitability Risk